03 June 2014
I am working in pvt co and we have paid sale tax which is shown under duties and taxes, can be the sales tax amt deductible or allowable under income tax act, if so under which act?
04 June 2014
There are two methods in accounting sales and sales tax 1.if you credit sales including sales tax and credit this gross sales to p&l account, sales tax paid is an allowable/ deductible expense. 2. If net sales is taken to p & l account excluding sales tax, sales tax paid will not be allowed as an expense.
The deductibility is not as per income tax act but based on method of accounting
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